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The move To an ePmo

UndersTanding Tanding TwhaTwhaTwha cUsTomers really wanT

emerging Trends in erP

TheTesTing Process

ParliamenParliamenP TaryTaryTservice

Migrating to an Executive Project Management Office

Navigating the maze of customer needs

What’s next on the system horizon?

A vital component to any project

A case study

www.probity.co.nz

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BUSINESS PErformaNcE ImProvEmENtWorking with a client’s organisation, Probity can help to diagnose and identify areas of the business that are not performing, and design and deliver an effective and dynamic improvement programme. We identify performance issues and the underlying root causes, taking a holistic perspective of the organisation and environment in which it operates. Through using techniques and tools such as Lean Six Sigma, Kaizan and other improvement methodologies, we develop and implement pragmatic solutions. Probity specialises in identifying key performance metrics within the client’s business and ensuring that they are aligned with the strategic objectives of the management team. Through the use of management reporting, executive dashboards and Business Intelligence, Probity delivers much needed visibility into operational and financial performance.Contact: Don Blair Email: don@probity.co.nz Mobile: 027 895 1490

chaNgE maNagEmENtWorking in partnership with our clients, Probity develops and implements comprehensive change management strategies specifically tailored to the needs of the business. Big or small, change done well can deliver significant impacts to both the effectiveness and morale of an organisation.Key to change management, we ensure effective communication and engagement plans, focused on supporting people through change, while minimising disruption to business as usual. No matter the scope, scale, duration or level of strategic importance of the proposed change, Probity provides a people-focused, logic-based approach that appreciates the need to get it right first time, while strengthening a culture of commitment and performance.From business process to cultural change, Probity helps clients deliver change where the rationale and benefits are both credible and self-evident. Contact: Marg Roberts Email: marg@probity.co.nz Mobile: 027 476 4148

tEchNology SElEctIoNProbity has a long-standing history of working with clients to understand their requirements when selecting new technology.This process begins with understanding the strategic objectives of the client’s organisation and their business imperatives. This is essential to determining the appropriate business requirements by which to effectively evaluate the options being considered to ensure the right fit for the task at hand.From Financial Management to ERP (Enterprise Resource Planning) systems to Customer Relationship (CRM) and Business Intelligence (BI) systems, Probity can provide common sense and pragmatic advice on clients’ technology needs. As we are truly independent, our clients can be assured that the advice we provide is exclusively aligned with their needs.Contact: Tom Robinson Email: tom@probity.co.nz Mobile: 021 871 999

fEatUrEd SErvIcES

aUtUmN 2013 17

inside This issUeAutumn 2013

2covEr STory

projEcT rEScUESaving your high profile project.

6 hoW to crEAtE A robust EPMo frAMEWorkMigrating to an Executive Project Management Office.

4

16

Navigating the maze of customer needs.

Profile.

uNdErstANdiNg WhAt custoMErs rEAlly WANt

10 MANAgiNg chANgE iN ruNNiNg ProjEcts

12A vital component of any project.

hoW to EffEctivEly APProAch thE softWArE tEstiNg ProcEss

crAig AldErsoN

8 What’s next on the system horizon?ErP trENds

case study.PArliAMENtAry sErvicE14

Showcase is published by Probity consulting limited. the content of Showcase is copyrighted.No part of this publication may be reproduced or transmitted in any form or by any meanswithout the prior written permission of the publisher

INTRODUCTIONIt’s been a very busy year to date for the ProbIty team. Our recently established Auckland office now has a permanent consulting team. We have some new faces, and a number of our experienced Wellington staff have elected to relocate to Auckland. While work with our established Auckland-based clients proceeds, we recently secured a number of large projects, including the task of assisting a prestigious educational institute with the selection of a range of new software to support its corporate functions.The Wellington team is also busy with a number of new projects, the scale and variety of which offer the kind of challenge we savour. These include:• Establishing an enterprise project management

office, the role of which will be predominately strategic rather than operational;

• Project managing the upgrade of the Smart-gate software for NZ Customs;

• Consolidating and rationalising a number of systems for MBIE;

• Evaluating an acquisition opportunity and preparing a business plan for an organisation in the digital media space.

In addition, Probity recently won a contract with the Secretariat of the Pacific Regional Environment Programme based in Samoa. We will be assisting with the selection of a new ERP application, with a focus on managing the organisation’s finances and research projects.

thIs Issue of the magazIneI would like to thank our clients for the positive feedback on the layout and content of the last magazine. While the two previous issues focused on specific topics, the content here is more general and designed to appeal to a wider audience. A couple of articles address project recovery and project initiation, topical given the ongoing discussions about Novopay.If you would like to receive this magazine, please contact us through our website, probity.co.nz, or pick up a copy when you next visit the Koru Club.

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PAGE 1

Projects fail for a variety of reasons, though the research shows five main causes of projects becoming troubled. These are:An insufficient understanding and / or agreement as to requirements. This can be translated into inadequate definition of the scope of the projects. Our experience

Project faIlure has been a topical subject of late, which in our mind leads to the question of whether a project can be recovered once it is identified to be in trouble. Our experience, backed by research, clearly indicates that troubled projects can be recovered provided that effective action is taken. US-based research shows that one third of all projects initiated by organisations are, at some point during their life cycle, in jeopardy of failing. This percentage varies among industry groups while also being dependent on the maturity of the organisations. Organisations that have well-functioning project management offices and established project management practices have fewer than half as many project failures. This percentage is further improved if the organisation has an established project recovery process.Smaller firms and professional service firms are most at risk, with about 40% having no process, formal or informal, for recovering at-risk projects. The manufacturing sector is best prepared, with 81% of companies having formal recovery processes, followed closely by finance and IT firms, 70% of which have formal recovery processes.

causes of troubled Projects

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PROJECT RESCUE

supports the research and we often find that a project has been initiated where the project manager, project sponsor, project resources and business case have different interpretations of the project scope and thus what the project will deliver.Inadequate and / or inappropriate resources are allocated to the project. We frequently find that organisations allocate staff to projects while insisting that they can perform their business as usual activities. This is usually done to reduce project costs, but inevitably ends up costing the organisation more. Equally, sometimes the most experienced staff are retained by the business and the less experienced are allocated to projects.

Issue eIght2

RequirementsUnclear, lack of agreement, ambiguous.

ResourcesLack of resources, resource conflict, insufficient skills, poor planning.

SchedulesToo tight, unrealistic, over optimistic.

PlanningBased on insufficient and incomplete data. Insufficient detail and poor estimates.

RisksUnidentified and / or assumed. Risks not managed.

ToP 5 CauSeS of PRojeCT failuRe

This inevitably affects quality and project timeframes. Project schedules are often determined by management to coincide with organisational events such as year end. Usually this means timeframes are too tight and the project is set up to fail from the outset.Project planning is based on insufficient data, insufficient detail and poor estimates. This usually affects project cost and delivery time-frames.Lastly, project risks are not adequately analysed and understood and consequently mitigation strategies do not exist when these risks arise. The research has also found that in smaller firms a lack of project governance is the greatest cause of project failure.

obSTaCleS To PRojeCT ReCoveRy

• Getting stakeholders to accept the changes needed to bring the project back on track, changes to scope, budget or resource

• Poor communication and stakeholder engagement; lack of clarity and trust

• Conflicting priorities and politics

• Finding appropriate qualified resources

• Lack of process or methodology required to bring the project back on track

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Project recoveryThe research indicated that project recovery actions are, in 55% of situations, initiated by senior management. The

autumn 2013 3

project sponsor initiated the action 16% of the time, the project management office 16% of the time and the project manager only 13% of the time. However, the research also showed that in smaller firms the project manager (24% of the time) and the project sponsor (24% of the time) were more proactive and more likely to recommend recovery intervention.Typically, the first action taken in an intervention strategy is to replace the project manager. Firms with established PMOs and project methodologies tended to replace their project manager with an external project consultant (48%), compared to 20% for those that did not. The five most common actions taken to recover a project are:1. The establishment and execution

of a formal project communication plan and improved stakeholder management (62%).

2. Reviewing the project, resulting in a reduction in scope and / or a re-

• Its completion will require a greater investment than originally provided for, taking into account acceptable contingencies.

• The project scope will not be met.

• Quality of the delivered result is below that normally acceptable by the organisation.

• Recipients of the result (customers) are not satisfied with what is delivered.

a PRojeCT Should be ConSideRed To be failing if

estimate of the project costs (60%).3. Reassessment of the project

resourcing, resulting in additional resources and / or a different composition of skill and capability (58%).

4. Identifying and addressing technical issues (49%).

5. Replacing the project manager or bringing in a consultant to manage the project (36%).

Project recovery initiatives were found to be very successful with 74%of projects successfully recovered.

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navigating the maze of customer needs

UNDERSTANDINGWHATREALLY WANTCUSTOMERS

Marketing to customers is perhaps one of the most misunderstood practices in business. it is too often done from the company’s perspective rather than the customers’

I recently had a series of meetings with several mid-level executives of a large and highly respected New Zealand company. The market for the company’s service had evolved significantly over the last 20 years, yet they had done very little to evolve with it. Their approach to understanding their market had been limited, and there was no sign of any new thinking on the horizon. When asked what they knew about their customers, the executives said, “We know what our customers buy from us, how much of it they buy and how often they buy it.” They had invested thousands of hours in data analytics, regression modelling and customer satisfaction survey results, but it was not telling them anything they didn’t already know, or offering insights into what their customers really wanted or needed.When asked what they knew about what their customers spent their money on, what they did during the day, at night, at home, at work, in their spare time, where they travelled and shopped, the executives knew virtually nothing. This lack of information was causing declining revenue in a slowly fading market and putting the business at risk.Having worked for years with prominent retailers and spent part of my career in charge of business performance improvement for a large global retailer, I know that few companies get this element of business right. Many devote marketing efforts to pushing out products that are an extension of what they currently sell rather than developing new and innovative offerings based on what they know customers want.Back to that New Zealand company and the missing data: One of the most important aspects of understanding your customers is to know what their world

looks like beyond their visit to your shop or website.A recent Harvard Business Review article underscores these points and companies’ failings. Noted Harvard marketing professor Ranjay Gulati, writing on marketing and innovation, cited the most common reasons for companies failing to understand customers: 1. Oversimplifying the process of

knowing your customers: Most companies think customer centricity is about CRM or customer service or segmentation, but these tools are just starting points.

2. Not realising that customers’ attitudes toward products change constantly: Attitudes are affected by choices, available information and price/value calculations.

3. Not realising how fluid ‘what customers value’ can be: In dynamic markets, the line between product/service attributes is ever-shifting. These purchase motivators represent the basic expectations that drive purchasing behaviour.

4. Fixating on their own products/services: Companies pursue customers through the lens of their own offerings and ask overly narrow, product-focused questions such as “Do you like my lettuce”? vs. “How do you like to eat”? or “What is dinnertime like in your household”?

Marketers must understand customers’ struggles, their everyday lives and what they are spending their money on, to identify the gap between what customers need and what the company is providing.

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Professor Gulati referenced a major lettuce producer that launched the fastest-growing grocery product in the last five years: chopped, washed, bagged salad (sold at five times the cost of the ingredients). A lettuce-focused line of consumer questioning would not have produced the insights into parents’ harried lifestyles and their desire for nutritious foods, conveniently sized, and no leftovers. Professor Gulati contended that narrowly focused customer silos prevent companies from identifying customer needs and company capabilities.In the end, it’s what we don’t know about our customers that leads to actionable insights and innovation. Investing the time in learning more about your customers is the key to successfully navigating the maze of customer needs.

4 Issue eIght

Don Blair leads Probity’s Business Improvement Solutions practice and is a former Director of Business Performance Improvement for a major global retailer with over 4,000 locations worldwide. Don is also a former Director of Corporate Development and Strategy for a global information services company based in Europe. Don began his career in manufacturing and operations, moving to the corporate strategy practices in two of the Big Four consulting firms.

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crItIque of the Pmo role for the framework, look in the mirror and question the role definition of the classic PMO. Are the functions performed in a balanced manner? Is there too much focus in certain areas, resulting in no or even a detrimental impact on operating performance? To start, I suggest we review five key functions of the PMO role1. PM methodology, standards,

implementation/management2. Project policies, procedures,

templates, implementation/management

3. Project/programme monitoring and controlling

4. PM coaching and mentoring5. Project/programme initiation

Functions 1 and 2 have typically been

the focus of organisations establishing a PMO. A robust methodology such as PRINCE2, PMI and the associated templates and procedures is the norm among many organisations in New Zealand. However, this is largely a one-off practice and entails the start-up phase of the governance framework design, so we will move on to other functions to question the value proposition the PMO brings to the business.

the PolIceman? It is easy to fall into the trap of viewing the project/programme monitoring and controlling function as the core role of the PMO, once the PMO office is set up. A heavy-handed governance role can ensue that requires strict reviews and completeness checks for every project/programme document and status report. Organisations must ensure there is

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The effectiveness of portfolio, programme and project management practices is a key issue for all organisations to address. The value proposition concerns not just the consistency of practice, via the project methodology adopted, but the overarching governance framework in which the project management office (PMO) plays a significant part.

It is a delicate balance. While the framework should promote transparency and accountability, the organisation must also ensure the process is robust, efficient and has no detrimental impact on current operating performance. Too much governance and project reporting becomes simply a completeness exercise, too little and silo behaviour will manifest throughout an organisation and all projects.

“in order for the ePMo role to be truly embraced,

a mindset shift is required in addition

to the right skills and capabilities”

Issue eIght

A RObUSTEPMOHOW TO CREATE

FRAMEWORK

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a compromise between exception review and a view from the project/programme managers of nanny state interference. If the latter has become prevalent, PMO offices will be ineffective, providing just a lip-service role and lacking support and trust from the underlying managers.The coaching and mentoring function goes hand in hand with the policeman risk, and can only be conducted in a supportive empowering environment. Too much policing and the opportunity for two-way trust is compromised. The balance between the two is essential, and many organisations are not achieving it. Project success would increase if project management offices spent time coaching project sponsors. The PMO office remit should go beyond the induction and coaching of project managers and question whether project sponsors have sufficient knowledge of project management to ask the right questions and speak the same language as the project teams. The PMO should close this gap where it exists.One bridging strategy is to outsource the coaching and mentoring role, especially at the initial stages when the PMO is setting up the framework and may be resource-constrained.

InItIatIon An underpinning role the PMO offices must play is to ensure all initiatives are aligned strategically with the enterprise goals. This adds real value. It takes a certain skill set and capability to switch from a detailed checklist view of the world to taking a top-down strategic view. A deep look at a given issue may be required, but as an exception rather than a rule. The real value proposition the PMO office should apply to fresh initiatives involves:• Reviewing and prioritising projects on enterprise-wide

benefits and against corporate goals;• Allocating resources and budget across the portfolios

and in a manner promoting best value for money with its associated business impact;

• Ensuring appropriate gates to assess and mitigate project risk;

• Ensuring that the project’s benefit review plan is refreshed as the enterprise-wide risks and benefits are better understood and become more quantifiable.

By taking this view, business can mitigate interdependent risks and assess the true benefits of any major initiative. The PMO office will then concentrate more on the strategic alignment of projects, the resource utilisation and true interdependent financial constraints. Better selection and prioritisation of projects will then result from this shift. This is one of the core reasons for redefining the PMO to EPMO, and to obtain better value overall for organisations.In tackling the issues discussed, the EPMO role will became a role in nature, not in name, with the project administration and over-regulated perception denigrated as a result.

enterPrIse redefInItIon The message is flowing through New Zealand organisations, as the EPMO term is more widely adopted and branded. We argue that in order for the EPMO role to be truly embraced, a mindset shift

autumn 2013 7

is required in addition to the right skills and capabilities. Entities need to:1. Expand the role definition of EPMO;2. Remove the policeman role and move into strategic context;3. Ensure that the EPMO function plays a strong hand in the

prioritisation and selection of projects;4. Embrace a framework that enables the EPMO to promote

collaborative two-way engagement with managers throughout the project/programme lifecycle;

5. Ensure that an effective change management strategy exists to properly communicate and train all staff, including managers and sponsors.

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a number of our customers want to upgrade or implement new ERP software. A common theme in 2012 was lack of capital, and clients were asking software vendors for innovative ownership solutions and service provision that minimised or eliminated expenditure need. The vendor community has offered a range of solutions, including:• Traditional ownership models of licence purchase and maintenance with an

implementation project. The software is hosted and maintained off-premise in a data centre;

• Software licensing as a subscription, with hosting in an off-premise data centre. This model does not address the cost of implementation by the vendor and client, which is still a large cash outlay because ERP implementations for large customers are rarely out-of-the-box;

• Some larger vendors are able to amortise their implementation costs through self-financing or third-party financing. While this alleviates upfront costs, the cost of finance must be recouped by the vendor, who may have a higher cost of finance than the client;

• Xero offers (generally for organisations smaller than the typical Probity client) the nearest to the traditional concept of cloud software, with a subscription pricing model and low to zero implementation project costs.

ERP in large entities is still mostly a ‘single-tenanted’ offering where one instance of the

cloud / software as a servIce

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ERPThere is a lot of commentary on ERP trends on the net and in industry publications; some written by software types looking to extol the virtues of their own products, some by consultants seeking to demonstrate their deep knowledge of the subject matter.In reading ERP-related articles and white papers it’s rare to get more than a few lines in without seeing the words ‘cloud’, ‘mobile’, ‘social’. In an earlier edition of Showcase we succumbed to the temptation to cover the topic, but talked about mobile only at the end.What’s happening in the New Zealand market in the ERP space? Fortunately it is mostly about mobile and cloud, not social.Probity has been involved in a number of projects over the last 12 months that have allowed us to interact with most of the major ERP and FMIS systems being implemented and used in New Zealand.

WhaT’S nexT on The SySTeM hoRizon

Issue eIght

TRENDS

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Most ERP vendors have at least one mobile application, but many in-use apps are best described as first-generation. They achieve a single function or have limited range of functionality, with some compromises are required to enable their function. Vendors are grappling with the requirement of maintaining up to four versions of their applications for iOS, Windows, Android and Blackberry. Some have decided to be device-agnostic by delivering apps that work via a web browser, but most of these are still in a test and development phase.At present, we don’t see customers making purchase decisions on the basis of the mobile applications available with a particular ERP. However, we are seeing the quality of applications becoming increasingly important in assessing ERP solutions.Our pick for the futureMobile isn’t avoidable and the demand for real-time decision-making is growing. We expect to see more development of mobile applications for approvals, time recording, job logging, reporting, CRM and sales automation and reporting. As browser rendering becomes more powerful (HTML 5), mobile apps will become more browser-delivered, releasing vendors from the tyranny of multiple versions.

Type “Social ERP” into Google and you will get a rich list of websites and blogs on the topic. There are differing opinions as to what the phrase means and about whether the industry is making significant investment in social ERP or leaving it well alone. Social media and other computing trends mean that more people now use computers (in their many shapes and sizes) in their personal lives. We find in our ERP practice that nearly everyone is using computers, and users are invariably familiar with TradeMe and other buying sites. “How does this catalogue thing work?” asks the user. “Like Amazon,” says the trainer: Training session more or less complete. A number of our clients use corporate messaging systems such as Microsoft Lync or Mulesoft ESB. These are usually installed with instant messaging presence, soft phones or video phone capability, and MS Outlook or Exchange integration. We are not seeing ERP systems utilising chat or other social media functions. Our pick for the futureWe don’t see much demand from New Zealand customers for social media-style enabled interaction within an ERP. Interaction between users within an ERP is mostly limited to approvals

There are a limited number of ways of recording the various parts of a transaction using your ERP. The ERP market has transaction recording largely covered. Where can ERP vendors differentiate their products? In the near future, a combination of improvements in the background, reducing the total cost of ownership through moving to the cloud and introducing new ownership models that smooth the customer’s cashflow, and ongoing improvements to mobile applications. There is room for improvement in reporting business intelligence and dashboarding from a number of common ERPs in New Zealand – but that’s a subject for another article.

mobIle

socIal

conclusIon

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application and associated databases are offered. A number of New Zealand vendors are working on enabling more multi-tenanted services, enabling greater economies of scale in data centre or cloud offerings.Our pick for the futureWe think this market will mature as vendors:• Migrate software towards being cloud-enabled;• Establish implementation methodologies that enable

complex client needs to be accommodated with standard configuration;

• Evolve their business models to make subscription-based offerings more attractive to clients;

• Leverage buying power to provide lower hosting costs to customers.

and rejections where system configurations typically require an authoriser to explain to the submitter why their budget or purchase order request is rejected.

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10 Issue eIght

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MANAGING CHANGE IN RUNNING PROJECTSWhen business leaders invest in projects, they expect the result to help them work more economically, efficiently and/or effectively. Too often, projects can be managed on time and on budget but fail to deliver all the benefits expected.

there are many reasons for this, from the scope and needs not being clearly articulated, resulting in a mismatch between what the project delivers and what the business needs, to the project delivering the required scope but the business failing to make the necessary procedure and process changes that will enhance operations and effectiveness.

This article discusses:• when and why projects that established the means for the business to

increase its performance do not succeed in realising the benefits• how to avoid and mitigate this risk to ensure you maximise the return on

your investment

Projects that have delivered the potential for the business to be more effective:• are based upon and aligned with clear business strategy and targets;• have sound and transparent links between the purpose and outcomes of the project and the

business strategy;• have monitored the business environment throughout the life of the project to ensure the

business case assumptions hold, and if not, have taken appropriate steps to ensure the best interests of the business are met; and

• have been considered and monitored in the context of the wider organisational business activity, with proactive management of any potential or actual unintended consequence.

when and why do successfully managed Projects based uPon sound strategy and assumPtIons In the context of the wIder organIsatIonal and busIness envIronment faIl to delIver?The principal reason that projects fail to deliver is that the organisation is not primed for the change. Senior management have not engaged sufficiently with the project to ensure staff:• understand the rationale behind the project and the resulting benefits; • appreciate and are prepared for any changes that are required to policies, procedures and

roles in order to make full use of the project deliverables;• are supported pre-implementation to receive the training they require, and post-

implementation to bed the project down and assimilate the changes into established ‘business-as-usual’; and

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• see ‘what’s in it for-them’ to change the way they do things to realise the full potential of the project.

While project management success is the responsibility of the project manager, if the project is to succeed the project manager has to ensure the senior management team are on board and recognise the need to invest an appropriate level of change management, training and support, and to invest time in communication. The focus on completing and delivering the project cannot be allowed to overshadow the focus on benefit realisation. The project manager cannot sufficiently influence the business in isolation of senior management. It is vital that senior management participate and position the business well to embrace change and capitalise on the investment, actively ensuring the benefits are realised. This may involve change from processes, roles and responsibilities, to behaviours, attitudes and values – in essence, the very culture of the organisation.

how to mItIgate agaInst the rIsk of Project faIlIng to delIverBeyond senior management engaging with the project and change management principles being applied, what else is required?• The identification of the full cost of embedding the project

in the business when the project is scoped and the budget is set and agreed. Depending on the scale of change and people affected, the budget may need to cover a dedicated work stream. This may include trainers, writers of policy and procedures, a change manager and a communications specialist. At the smaller end of the scale, what may be needed is only the identification of hours required from specified in-house personnel with the requisite skills, and a detailed timeline.

• A ring-fenced budget for embedding change. Often this part of the project budget is compromised as funds are channelled to meet expenditure beyond budget in the earlier phases of the project, such as the design, build and technical implementation of the project.

• Access to appropriate communication channels and training and support resources secured early in the project. Many resources can be used, from the company intranet and e-learning packages to road shows, workshops and cheat sheets. Some take significant time to organise and harness effectively. Communications and training resources should be ‘fit for purpose’. With a large-scale project affecting many people, communication, training and support resources should be multi-channelled to ensure people’s circumstances and a variety of learning preferences are considered and, where feasible, accommodated.

• An identified person who has a formal brief to take responsibility to ensure:

» All those directly involved with communications, support and training are well prepared, feel well supported and understand the expectations of them and their key deliverables. This may involve mentoring, guiding and facilitating senior managers’ active involvement in securing the project benefits through reassuring their teams of the project’s merits and rationale and ensuring their teams have the time for training and to adapt to the changes required of them.

» All key stakeholders:

- are well informed and aware of progress against milestones and budget;

- have the opportunity to provide feedback and advice; and

- support the implementation of the system change and associated procedures and policies.

» All those whose ongoing work is affected by the project, whether directly or indirectly:

- understand what the change will mean for them and how it will most likely affect them; and

- are assured that they will receive the required training and support to be able to work effectively at their jobs.

» All messages regarding the change across stakeholders are relevant, accurate, timely, well coordinated and consistent.

» Training, communications and support are provided effectively and cover the post-implementation phase as required to ensure a smooth transition and a sustained level of confidence with the change to ‘business-as-usual’.

• Ongoing monitoring of performance and benefit realisation. This enables management of any unintended consequences that might arise, and allows for feedback of lessons learned for application in other projects.

The investment may seem significant for perceived intangibles such as confidence and engagement, but against the cost of failure to realise benefits, it is an investment well worth making.

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12 Issue eIght

Showcase

TESTING PROCESS

HOW TO EFFECTIvELY APPROACH THE SOFTWARE

The testing process is a vital component of any project. It ensures the quality of the solution being implemented and in many cases is the first time key users involved in the project lay their hands on the solution. However, many organisations fail to effectively undertake the testing process, a shortcoming highlighted in media reports as a factor in high-profile project failures. This article discusses how to approach the process and leverage resources to achieve success, in the form of an error-free solution that can be safely implemented.

common mIstakesthe testIng Process ensures quality assurance, in that the implemented or custom-built solution works as expected and supports business processes in delivering organisational outcomes. Important as it is, it is quite often the activity the project team will try to squeeze in before deployment, not unusually following delay of previous project phases. To meet the deadline the project team may be occupied preparing for the deployment, while waiting for the sign-off of the testing process. Defects can often be found at this late stage of the project, which will be delayed if the defects are critical or workarounds are identified and sometimes reluctantly accepted by the business. The situation is manageable and can be handled in a proper manner following a defects management process. However, even with a robust sign-off and recovery process, defects can still be found after the solution goes live. How can project teams prevent this?

Involve end users In the testIng ProcessIt is valuable to examine where projects are failing in the testing process. The answer lies in the nature of common unexpected defects: a particular function is not tested, key reports have been missed or an error occurs when data is handled in an unexpected way. Many

defects are a result of limited involvement of end users during the development of the solution. They know the requirements better than anyone else in the organisation and how the functionality is best used. With flexibility built into today’s systems it is not uncommon for users to have more than one way to complete a process. Involving them will ensure that a full range of functionality is addressed. The challenge is that, in many cases, users do not have the luxury of time to focus on the project due to their business-as-usual commitments. How can we improve the coverage of testing by ensuring business continuity and without draining resources?

consIder testIng early In the Project During the scoping/design phase of the project, users are normally involved in documenting existing business processes and providing feedback as part of a gap/fit analysis. These are usually held as workshops, to ascertain how the solution should be configured or customised to support future business processes. This takes place early in the project, with key users being reacquainted with the project again during the later user acceptance testing process. As the documentation of the existing and future business processes takes place, there is an opportunity to begin the

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testing process. In documenting the business processes, users are made to think through the end-to-end processes and record the inputs and outputs required to support their everyday business activities. Process triggers, jobs required, outcomes expected and reports required are all captured. These can be translated into test scenarios and linked to the business processes as appropriate.

maP test scenarIos to busIness ProcessesThe core project team with limited business support can map the test scenarios to the business processes based on the information gathered in the scoping/design phase. Numbering conventions can be used for references; for example, general ledger business process (GL-01) can be linked to test scenario 01 to create GL-01.01. Test cases or test scripts for test scenario 01 can be numbered as GL-01.01.01 to complete the cross - referencing.

emPloy a rIsk based aPProachOnce the testing scenarios and test cases are validated by the users, a risk-based testing approach can be adopted. Testing scenarios and test cases can be rated based on risk by allocating testing effort to the high-risk areas. Testing of these scenarios/cases can be performed by the core project team early in the testing cycle. Risk-based testing helps achieve good value for money by focusing on risk-critical business areas.

the result Is an ImProved fInal solutIonUsers who are involved in determining the testing scenarios and test cases up front have a stronger sense of ownership and a higher desire to roll out a quality solution compared with those who are involved in the testing process only during the user acceptance testing phase. Early input from the users can also help improve the formulation of the testing strategy and programme. Identifying critical functionality early in the project, well before the final testing round, will provide a high level of insight and increase the likelihood of a successful solution.

“identifying critical functionality early in the project will provide a high level of insight and increase the likelihood of a successful solution”

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PARLIAMENTARY SERvICEProbity assisted the Parliamentary service with the imProvement of its financial Processes

Improvement projects are not necessarily linked to a new software implementation or software version. Probity recently helped the Parliamentary Service make significant improvements to its financial processes and reporting. This involved a number of systems used by Parliamentary Service and the implementation of purchase cards and a web-based expense management system.

the Project and the outcomeParlIamentary servIce sought to streamline its financial processes and improve the accuracy and timeliness of its budgeting and reporting systems. Probity led the project, which achieved:• A common chart of accounts across the three Parliamentary

organisations, and the offices of MPs and other relevant political organisations. As the Parliamentary Service provides a shared service for transactional processing and other financial services to the Office of the Clerk, the Parliamentary Council Office and all Members, considerable efficiencies can be gained from the use of a common chart of accounts.

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• Improvements in the Parliamentary Service’s budgeting and reporting processes, enabling clients to access useful financial information within a suitable timeframe and in a format suited to their business needs.

• The implementation of a purchase card system, improving efficiency for the shared service and its customers by allowing the fast and efficient transaction of smaller amounts without the need for a great deal of centralised processing.

These improvements were delivered by Parliamentary Service staff and a small project team, led by a Probity Project Manager and in concert with Parliamentary Service suppliers.

contact usProbity Consulting has considerable experience in assisting organisations with the streamlining of financial processes and introduction of efficiencies. If you wish to discuss how Probity may be able to benefit your organisation, please contact Tom Robinson at tom@probity.co.nz or on 021 871 999.

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what attracted me to ProbIty?the key thIng for me on a personal level is that I felt from the outset that there is a real culture of belonging, support and a real desire to cut through the bureaucracy and deliver real positive change to our end-client.Having a number of dealings with consultancy firms in my past life, I am wary of “best practice” firms coming in and delivering what they feel is the best solution. Never assume!!! The art of listening to clients at all levels and providing a solution that makes sense and being judged on end results is what really matters. Probity’s core values are very much about that.In addition, Probity understands that you need to value your own resources internally and provide a challenging, interesting and rewarding framework for all to flourish in with good work life balance underpinning it all. I feel that Probity is a fantastic environment for me to advance further in my career with a superb management team to mentor my further growth.

what do I brIng to ProbIty?I have a wealth of international experience already in my career, specialising in financial and risk management and project management,

and have recently supplemented this experience with marketing and new product development in the engineering sector. I am a capable change manager, having worked in Investment banking, Energy and Manufacturing industries with overseas experience including stints in the UK, Singapore, Cayman Islands as well as Australasia. Wellington signifies a full circle for me as my grounding was at Ernst and Young and New Zealand Treasury. It is good to be back home!!!

what motIvates me In my work?I love a challenge and working with different types of people and in distinct environments. I am a self motivated individual with a highly energetic, “close to the action” type focus who also appreciates the big picture and owns a project from start to finish.

what have I been workIng on recently?I have been on a mini-sabbatical since getting back to New Zealand in September after over 15 years abroad. I have not been idle though, helping set up Dial a CFO in the South island and assisting entrepreneurs in Christchurch in the rebuild. My last role was as a

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marketing and product development manager at Galvin Engineering, a small $20m manufacturing firm in Perth. This was a very interesting role and highlights that I am not your typical CA!!!

what do I get uP to outsIde of work?My family is a key part of my life (wife Elizabeth from Sweden/UK and Liam (9), Mia (7). I spend as much time with them as I can and look forward to being part of the local Eastbourne community.I am a very sporty individual with a love of the outdoors and keeping fit. I still play and coach cricket which is a primary passion of mine.Other than that socialising with friends, films, travelling and good wining and dining always strikes a chord!!

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oUr services

BUSINESS PErformaNcE ImProvEmENtWorking with a client’s organisation, Probity can help to diagnose and identify areas of the business that are not performing, and design and deliver an effective and dynamic improvement programme. We identify performance issues and the underlying root causes, taking a holistic perspective of the organisation and environment in which it operates. Through using techniques and tools such as Lean Six Sigma, Kaizan and other improvement methodologies, we develop and implement pragmatic solutions. Probity specialises in identifying key performance metrics within the client’s business and ensuring that they are aligned with the strategic objectives of the management team. Through the use of management reporting, executive dashboards and Business Intelligence, Probity delivers much needed visibility into operational and financial performance.Contact: Don Blair Email: don@probity.co.nz Mobile: 027 895 1490

chaNgE maNagEmENtWorking in partnership with our clients, Probity develops and implements comprehensive change management strategies specifically tailored to the needs of the business. Big or small, change done well can deliver significant impacts to both the effectiveness and morale of an organisation.Key to change management, we ensure effective communication and engagement plans, focused on supporting people through change, while minimising disruption to business as usual. No matter the scope, scale, duration or level of strategic importance of the proposed change, Probity provides a people-focused, logic-based approach that appreciates the need to get it right first time, while strengthening a culture of commitment and performance.From business process to cultural change, Probity helps clients deliver change where the rationale and benefits are both credible and self-evident. Contact: Marg Roberts Email: marg@probity.co.nz Mobile: 027 476 4148

tEchNology SElEctIoNProbity has a long-standing history of working with clients to understand their requirements when selecting new technology.This process begins with understanding the strategic objectives of the client’s organisation and their business imperatives. This is essential to determining the appropriate business requirements by which to effectively evaluate the options being considered to ensure the right fit for the task at hand.From Financial Management to ERP (Enterprise Resource Planning) systems to Customer Relationship (CRM) and Business Intelligence (BI) systems, Probity can provide common sense and pragmatic advice on clients’ technology needs. As we are truly independent, our clients can be assured that the advice we provide is exclusively aligned with their needs.Contact: Tom Robinson Email: tom@probity.co.nz Mobile: 021 871 999

fEatUrEd SErvIcES

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Showcase is published by Probity consulting limited. the content of Showcase is copyrighted.No part of this publication may be reproduced or transmitted in any form or by any meanswithout the prior written permission of the publisher

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